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The Relationship between Distribution Network and Market Share


Affiliations
1 School of Business, Alliance University, Chikkahagade Cross, Chandapura-anekal Road, Anekal, Bangalore, Karnataka-562106, India
     

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The inter-relationships between distribution network and market share has been the subject of extensive investigation in the marketing models literature, especially for fast-moving consumer goods. The studies of Farris et al (1989), Verbeke et al (1994), Cadeaux and Tan (2004), and Wilbur and Farris (2007) have provided several insights into the distribution-market share relationship for several different product classes.

The objective of the present study is to mathematically model the relationship between the distribution network and market share of a class of cardio-vascular pharmaceutical drugs. The proposed model expresses distribution as a function of market share, as the products in question are largely subject to a "pull" effect. The model empirically assesses the "pull" and "push" effects for the given class of products, and allows distribution planning for the same.


Keywords

Distribution Network, Market Share, Fast-moving Consumer Goods, “Pull” and “Push” Effects
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  • The Relationship between Distribution Network and Market Share

Abstract Views: 72  |  PDF Views: 0

Authors

Mihir Dash
School of Business, Alliance University, Chikkahagade Cross, Chandapura-anekal Road, Anekal, Bangalore, Karnataka-562106, India
Arunabhas Bose
School of Business, Alliance University, Chikkahagade Cross, Chandapura-anekal Road, Anekal, Bangalore, Karnataka-562106, India

Abstract


The inter-relationships between distribution network and market share has been the subject of extensive investigation in the marketing models literature, especially for fast-moving consumer goods. The studies of Farris et al (1989), Verbeke et al (1994), Cadeaux and Tan (2004), and Wilbur and Farris (2007) have provided several insights into the distribution-market share relationship for several different product classes.

The objective of the present study is to mathematically model the relationship between the distribution network and market share of a class of cardio-vascular pharmaceutical drugs. The proposed model expresses distribution as a function of market share, as the products in question are largely subject to a "pull" effect. The model empirically assesses the "pull" and "push" effects for the given class of products, and allows distribution planning for the same.


Keywords


Distribution Network, Market Share, Fast-moving Consumer Goods, “Pull” and “Push” Effects

References